The crypto market’s market value has significantly increased by $20 billion in the past week. Since early February, the price of Ethereum Increase by 60 percent from $102 to $163. An upgrade to the procedure on a public blockchain network will decrease Ethereum’s block rewards, reducing the amount of mining of ETH on the network by miners.
The decrease in block rewards was decided on 31 August and should have been priced in. The precise timing, however, was undetermined. Originally, integration was postponed until the end of January, and the date (or block, to be accurate) was agreed only on 7 December.
However, the hard fork of Constantinople has been postponed until February 25 and is scheduled to take place tomorrow. The suspense of a decrease in block rewards is likely to have an affect on Ethereum’s price phenomenon, as it lowers the potential supply of ETH in the coming months and rises the asset’s scarcity.
In addition to the decline in supply from Ethereum, basic factors such as the rise in the trading volume of the Bitcoin network, an increasing number of organisations investing in the crypto market and the devotion of financial firms such as Fidelity and ICE in the cryptocurrency industry could contribute to the recent asset class rally.
On the technical aspects, the BTC chart, which often has a significant impact on the price trend in the rest of the cryptocurrency market, contains all bottom subsystems. Many insiders have stated that in early 2019 Bitcoin probably reached its bottom at $3,122 and is starting its exponential growth phase.
Ethereum Increase Momentum
Presently, without new capital flowing into the asset class, there is already $ 6 billion to invest in cryptocurrencies such as Bitcoin and Ethereum on the backbenches in the crypto space.
An immediate improvement in current feelings about the short-term quality of the cryptocurrency market and powerful market movements of large digital assets could lead institutional investors to engage in the coming weeks. As Bitcoin showed resilience, small market cap coins like Ontology, NEO and OmiseGo reported profits against the USD in the range of 15 to 20 percent.
If the positive momentum of Bitcoin, Ethereum and other major crypto assets can be be maintained in the short term, there will be lengthened upside motions in the near future.